This article first appeared on GuruFocus .
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Consolidated Revenue:INR1,121 crores, a 15% increase year on year.
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Consolidated EBITDA:INR656 crores, a 19% increase year on year.
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Retail Consumption Growth:25% year on year, reaching INR4,992 crores in Q3 FY26.
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Retail Rental Income:INR573 crores, a 13% increase year on year.
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Retail EBITDA:INR585 crores, a 16% increase year on year.
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Retailer Sales (9 months FY26):INR12,326 crores, a 17% increase year on year.
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Office Leasing:1.2 million square feet gross leasing year-to-date.
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Office Income (9 months FY26):INR162 crores with EBITDA of INR103 crores.
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Hotel Income (9 months FY26):INR423 crores, an 8% increase year on year.
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Hotel EBITDA:INR190 crores, a 16% increase year on year.
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Residential Gross Bookings (9 months FY26):INR412 crores.
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Net Profit:INR276 crores, a 4% increase year on year.
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Operating Cash Flow (9 months FY26):INR1,508 crores, a 24% increase year on year.
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Capital Expenditure (9 months FY26):INR722 crores.
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Gross Debt:INR5,200 crores as of December 31.
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Net Debt:INR3,344 crores as of December 31.
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Net Debt to Annualized EBITDA:1.3 times.
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Average Cost of Debt:Reduced from 7.68% to 7.62% by December 2025.
Release Date: January 29, 2026
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
Positive Points
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Phoenix Mills Ltd ( BOM:503100 ) reported a 15% year-on-year increase in consolidated revenue for Q3 FY26, reaching INR1,121 crores.
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Consolidated EBITDA grew by 19% year-on-year to INR656 crores, demonstrating strong operating leverage.
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Retail consumption grew by 25% year-on-year, driven by broad-based demand across categories.
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The company maintained a prudent balance sheet with strong operating cash flows and disciplined capital allocation.
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Phoenix Mall of Asia in Bangalore saw a 112% increase in consumption, highlighting the success of their tenant mix and strategic location.
Negative Points
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Despite strong consumption growth, rental income growth lagged, with a rent-to-consumption ratio at its lowest since 2014.
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Occupancy at Phoenix Mall of Asia is still at 88%, below the typical 95% seen in other new malls.
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The company faces challenges in aligning rental income with consumption growth, particularly in high trading density categories.
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There is a significant lead time for new developments to transition from build and lease phases to rental monetization.
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The tax rate has increased to 24-25% in recent quarters, higher than previous periods, impacting net profit growth.
Q & A Highlights
Q: Can you talk about the performance and potential for growth in Mall of Asia, given its high consumption levels but lower rents? A: Varun Parwal, Investor Relations: Mall of Asia has shown phenomenal performance since its launch in October 2023, nearing the levels of Phoenix Palladium. The tenant mix, including flagship stores like Apple and Rolex, has been extraordinary. We expect rental growth to align with rising consumption over the next few quarters. Currently, occupancy is at 88%, and we anticipate it will stabilize at 94-95% soon. Consumption reached INR732 crores in Q3, up 112% year on year, with rental income growing by 58% to INR62 crores.
Q: How has Phoenix Mills managed to outperform the market in retail, especially during the festive season? A: Rashmi Sen, CEO - Malls and Whole Time Director: Our performance is driven by strong repositioning efforts, including churning out low-performing categories and introducing high-trading brands. The festive season, along with strategic marketing initiatives and asset upgrades, has contributed to our success. We've seen double-digit growth across categories, including fashion and jewelry, and have introduced successful concepts like Gourmet Village to enhance consumer engagement.
Q: What is the status of the Thane and Kolkata residential projects? A: Varun Parwal, Investor Relations: For Thane, we are developing a retail-led mixed-use district with a destination mall and Grade A office space. We are in the final stages of securing approvals and expect to commence construction activities soon. For Kolkata, we are finalizing approvals and designs, with updates on the launch timeline expected in the next two quarters.
Q: Can you explain the lag between consumption growth and rental growth, and how it affects your financials? A: Varun Parwal, Investor Relations: Consumption growth is crucial for attracting new brands and renegotiating leases. While consumption can grow rapidly, rental adjustments typically follow over a 3-5 year period as leases are renewed and revenue share agreements are optimized. Historically, our rental growth has kept pace with consumption growth, and we expect this trend to continue.
Q: What repricing opportunities exist with upcoming lease renewals, and how will they impact financials? A: Varun Parwal, Investor Relations: We have a significant opportunity with 50% of our leasable area up for renewal in the next three years. Historically, we've seen a 20-30% increase in rents during renewals, driven by optimizing brand mix and negotiating better terms. This will contribute to sustained rental income growth.
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
